January 23, 2017 meeting minutes

Chairman Crawford called the meeting to order at 7:30 p.m. Chairman Crawford announced that the meeting was being recorded for transmission by cable television.

Review of Fiscal Year 2016 audit

Town Accountant and Assistant Director of Finance Julianne McCarthy and Frank Biron and Manda Morse of Melanson Heath, the independent auditing firm hired by the own to conduct its annual financial audit, appeared before the Board.

Mr. Biron reviewed the audit results and said the Town had incurred no exceptions and its practices are in accordance with generally accepted accounting practices. He reviewed the Town’s assets, reserves and long-term liabilities. He said the Town’s debt is reasonable for a community of its size. The other post-employment benefits (OPEB) obligation is $30,760,382 and its pension obligation is $29,141,294. He noted the way these obligations will be treated is changing due to new federal accounting standards, GASB 74 and 75. He said as a result, these amounts will be increased incrementally each year, and beginning in 2018, the Town must report the entire amount of the liability in its financial statements. The pension calculation is addressed in GASB 68 and reflects the proportionate share of the regional retirement system liability. The outlook depends on the performance of investments. He said almost all municipalities are in the predicament faced by Lynnfield.

Mr. Biron said the general fun numbers are very strong and that the Town does a good job collecting taxes. Most important is the unassigned fund balance of $5,685,411, due in part to a strong free cash balance. This is important to bond rating companies, and is 12 percent of the annual budget, which is very strong. Mr. Biron said bond rating companies like to see communities working toward addressing OPEB obligations and having plans to address it through dedicated funding sources. Bond rating companies like to see towns using free cash for capital expenses, not operating expenses; Lynnfield’s practice conforms to this.

Mr. Biron said that the calculations of the golf enterprise consider the value of the property as well as the bond for its purchase. He said that the operation showed a loss due to the clubhouse project funding. Selectman Barrett noted that during this period, only one of the two courses was in operation for the entire fiscal year.

In response to questions from Board members, Mr. Biron said that OPEB liability is up each year because actuarially the Town would have to add millions of dollars per year to fully fund this obligation. He said some, but not many, towns are handling this more aggressively. He said he could not estimate what the Town would have to add to its OPEB funding to reach the AAA bond rating. The amount of custodial credit above the amount covered by insured institutions may not be a problem, and is a very low balance compares to most communities.

Mr. Biron said the Town once again received no management letter this year, which is a good thing. He said the Town does a great job maintaining its financial records and the professional staff does a very good job. He said his firm recommended some housecleaning tasks. Chairman Crawford congratulated Ms. McCarthy, Town Administrator James Boudreau, and the Town staff.

Ballot question on non-medical marijuana

Town Counsel Thomas Mullen said that the recent passage of a ballot question making sale and cultivation of marijuana for non-medical purposes has been a nightmare for communities. He said the Town is allowed to limit this locally, but must pass a bylaw ratified at the ballot, although towns adopt bylaws at town meeting under the local charter and state law. Mr. Mullen is recommending that the Town adopt a “belt and suspenders” approach by banning the sale and cultivation of marijuana for non-medical purposes in both a general bylaw and in the zoning bylaws, and authorizing such changes to the bylaws at the town election. He said the Town would have to amend its existing bylaw on medical marijuana as well. He said the Town could also seek to pass a moratorium .

Chairman Crawford said the Town voted strongly against the referendum seeking to make sale and cultivation of non-medical marijuana legal. He said that he agreed with Mr. Mullen’s recommendation. Selectman Barrett agreed and said the law is a mess. Mr. Boudreau said that the legislature is considering requiring communities to pass the measure affirmatively instead of having to opt out.

On the motion of Selectman Barrett, duly seconded by Selectman Dalton, the Board voted unanimously to direct Mr. Mullen to daft a referendum question for the April town meeting ballot as proposed.

Memorandum of understanding with library on the transfer of a portion of the Reedy meadow golf course

Mr. Mullen said that the proposed memorandum of understanding would transfer the control and custody of a portion of the Reedy Meadow gold course to the Board of Library Trustees for the purpose of erecting a new library there. The proposed transfer was passed by town meeting with the understanding such an agreement would be adopted that addresses who maintains the property in the interim., This agreement allows the golf course to use and maintain the property until town meeting appropriates funds for the building of the library. The agreement would terminate on October 17, 20121, at which time custody and control would revert to the Board.

On the motion of Selectman Barrett, duly seconded by Selectman Dalton, the Board voted unanimously to ratify the memorandum of understanding as presented.

Police Department Fiscal Year 2018 budget presentation

Chief David Breen appeared before the Board to present the department’s Fiscal Year 2018 operating and capital budget proposals. He reviewed changes to salary line items to fund contractual obligations. Overall, salaries would increase by 1.9 percent with training increasing by 2.4 percent and overtime increasing by 2.5 percent. Some increases in expenses would allow for the purchase of new ammunition for new suns. Expenses would increase by 1.1 percent overall, with a total operating budget increase of 2.0 percent.

Chairman Crawford thanked Chief Breen for bringing in a budget at a fiscally responsible level. He asked about recruitment of a patrolman for a vacant position. Chief Breen said interviews have been conducted and an appointment would be made from the civil service list in a few weeks. He also said two patrolmen passed the sergeant exam and that appointment would also be made soon. He said he may seek the addition of an officer for administrative duties in the next fiscal year.

In the capital budget, the request includes two new cruisers, at a total cost of $93,000 as part of the ongoing replacement plan; $39,000 to complete the radio site replacement project; and smaller amounts for purchase of new Tasers, radar equipment, a portable breath tester, two patrol rifles, an electronic keypad for access to the dispatch area, replacement of the computer server, and a radar traffic trailer. The entire request totals $173,726.  Chairman Crawford said that Mr. Boudreau will review this request. Selectman Dalton asked about the cutoff for equipment purchases to be included in the operating budget rather than the capital budget. Mr. Boudreau said the rule of thumb is that the equipment must last five years or cost more than $5,000.

Fire Department Fiscal Year 2018 budget presentation

Chief Mark Tetreault appeared before the Board to present the department’s Fiscal Year 2018 operating and capital budget proposals. On the operating budget, fire fighter salaries would increase by 4.2 percent, with full implementation of the firefighter contract and the new staffing proposal. A new clerical position is requested at a salary of $45,000. This would allow a fire lieutenant to attend to other duties. Firefighter overtime would increase by 7.3 percent, with holiday pay reduced by 14 percent. Educational incentives are increased to recognize firefighters who are now eligible for this payment. Specialty pay is increased by 39 percent as the new contract provides for new stipends for specific duties. Call firefighter salaries are increased by 2.5 percent as are fire alarm salaries.

Selectman Dalton noted that salaries increased by $300,000 last year and questioned why salaries would increase by ten percent more this coming year. Mr. Boudreau said that the increase reflects the new clerical position and compounds two years of pay increases, as the contract was not settled due to the negotiations regarding the new staffing model. Chairman Crawford asked why the overtime is increasing under the new staffing model when a decrease was expected. Chief Tetreault said that this line also reflects two years of rate increases sunder the contract. He said a reduction has been seen in the number of regular firefighter call-backs under the new staffing model. Selectman Dalton requested a detailed breakdown of projected salary and overtime expenses by category. Mr. Boudreau said he would work with the chief to provide that data at a subsequent Board meeting.

On the emergency medical service enterprise (EMS) budget, Chief Tetreault noted that the same compounded salary increases over a two-year span are reflected in this budget. He said there was an increaser in the amount budgeted for fringe benefit costs, which increases the burden on the EMS enterprise and lessens it on the Town side. He said all expenses have been broken out to provide better understanding on where the enterprise funds are going. Billing services are up by $22,000, but this has been a good investment as it has resulted in increased collections. He said the enterprise budget is in the best shape it has been in years., with a reduction of 1.4 percent in the budgeted request. He said there is a reluctance to fund the clerical position until there is more experience with the new staffing model. Chief Tetreault said it is rare for a department of this size not to have a clerk, and said it is overdue. He said he understands the Board’s thoughts but noted this request has been made for several years.

On the capital budget, the request includes protective clothing replacement at $15,000; two washer/extractors for $8,500; replacement of one ambulance at $250,000, a portion of which would be funded through the enterprise account; intravenous pumps for three ambulance at $14,400 to meet state mandates; AED defibrillators to replace units over 10 years old, at $15,000; replacement of two ambulance stretchers which are in danger of failing the state inspection, at $26,000; a staff car at $38,000 to replace a 2000 truck; $39,000 for the radio repeater project; $5,000 for the annual hose replacement program, which was not funded last year; $15,000 for computer purchases; $10,000 for upgrades to the dispatch area; $46,000 for a new self-contained breathing apparatus (SCBA) compressor and $260,000 for forty new SCBA units – the Town has applied for a grant to assist with this funding; replacement of mobile radios at $110,000, for which the Town has also sought grants.

In response to questions from the Board, the chief said that there is about $40,000 available from retained earnings in the enterprise account to help fund the first year of debt on the ambulance purchase. Chairman Crawford remarked that the goal was to have enough retained earnings to purchase a new ambulance every five years. Chief Tetreault said that the EMS enterprise budget is collecting more funds due to the new rate system and the new billing company.

Department of Public Works Fiscal Year 2018 budget presentation

Director John Tomasz appeared before the Board to present the Department of Public Works Fiscal Year 2018 budget request. He said he inherited a well done budget and did not make many changes. He said he reviewed each position for salary, overtime and stipends.

In highlighting changes to the budget, he said he added funds for painting and maintenance at the schools and Town Hall, and added funds for custodial supplies, and included $10,000 for Town Hall renovations. The municipal buildings budget is up by 9.3 percent.

Under fields maintenance, he said the worksheet developed by Fields Committee Chairman Arthur Bourque III is very good and that he has examined what should be handled in-house and what should be handled by contractors in light of the schedule and other demands on department personnel. His estimate is a worst-case scenario for the Town, and he acknowledged that the fields revolving fund will absorb some of the $215,000 cost.

Chairman Crawford said that Mr. Tomasz finished this task in avert short time and said that the Board understands there will be more work when the new projects are completed. The budget and the revolving fund will split the cost of maintenance. He said he appreciated the narrative in explaining line items. Requests for proposals for landscaping and turf management will be posted. Mr. Tomasz says he is discussing responsibilities for field maintenance with user groups. Selectman Barrett said he is glad to hear that the work will be done, whether it is by Town personnel or vendors. He encouraged Mr. Tomasz to tell the Board what is required to properly maintain these fields. Mr. Tomasz said the work will include $215,000 from the revolving fund and $125,000 from the budget for contractors.

On the capital budget, Mr. Tomasz said many of the items are carried over from previous years. He said that he would reduce this request after reviewing the items further. Bus replacement reflects two buses that have mileage over 100,000. He said he believes that the $100,000 cost estimate is solid. The Board asked him to look at purchasing buses with seatbelts for students.

Appointment of departmental records officers

On the motion of Selectman Barrett, duly seconded by Selectman Dalton, the Board voted unanimously to appoint the following as departmental public records officers: Winifred Barrasso – inspectional services; Julianne McCarthy –accounting; Holly Mercer – library; Linda Naccara – Council on Aging. These are in addition to officers appointed at a previous meeting of the Board.

Use of Town facilities

On the motion of Selectman Barrett, duly seconded by Selectman Dalton, the Board voted unanimously to approve the use of the common on May 13, 2017 by the Centre Congregational Church for its annual craft fair.

On the motion of Selectman Barrett, duly seconded by Selectman Dalton, the Board voted unanimously to approve the use of Town streets by the Calvary Christian Church for its annual road race.

Approval of minutes

On the motion of Selectman Barrett, duly seconded by Selectman Dalton, the Board voted unanimously to approve the minutes of the meeting of September 27, 2016 as presented.

On the motion of Selectman Barrett, duly seconded by Selectman Dalton, the Board voted unanimously to adjourn at 9:22 p.m.